Exhibit 11.1
Redwood Trust, Inc.
Statement Re: Computation of Per Share Earnings
| Three Months | Nine Months | |||||||||
| Ended | Ended | |||||||||
| September 30, 2001 | September 30, 2001 | |||||||||
Basic: |
||||||||||
Average common shares outstanding |
10,392,820 | 9,379,286 | ||||||||
Total |
10,392,820 | 9,379,286 | ||||||||
Net Income |
$ | 8,064,694 | $ | 21,207,893 | ||||||
Per Share Amount |
$ | 0.78 | $ | 2.26 | ||||||
Diluted: |
||||||||||
Average common shares outstanding |
10,392,820 | 9,379,286 | ||||||||
Net effect of dilutive stock options outstanding
during the period — based on the treasury stock method |
359,242 | 286,850 | ||||||||
Total |
10,752,062 | 9,666,136 | ||||||||
Net Income |
$ | 8,064,694 | $ | 21,207,893 | ||||||
Per Share Amount |
$ | 0.75 | $ | 2.19 | ||||||